NON-PAYMENT OF SSS CONTRIBUTIONS IN THE PHILIPPINES A comprehensive legal guide for employers, workers, and counsel
1. Statutory Framework
| Law / Issuance | Key points on non-payment |
|---|---|
| Republic Act No. 11199 – Social Security Act of 2018 | Makes SSS coverage compulsory for virtually the entire private-sector labour force; vests the SSS with quasi-judicial powers to assess and collect unpaid contributions. |
| Implementing Rules & Regulations (IRR) of R.A. 11199 | Fix the civil penalty of 2 % per month on any unremitted contribution (Sec. 22-A IRR) and lay out the full roster of criminal offences and penalties (Sec. 28 IRR). |
| SSS Circulars & Schedules of Contributions | Update deadlines and the contribution rate, which rose to 15 % of the Monthly Salary Credit (MSC) effective 1 Jan 2025 (10 % employer / 5 % employee). (Social Security System) |
2. Core Employer Obligations
- Register the enterprise and every new hire with the SSS within 30 days of first employment.
- Withhold and add the employer share so the combined 15 % of MSC is remitted on or before the due date assigned to the employer’s SSS number.
- File the required contribution reports (now largely electronic). Failure in any of the above already constitutes a violation. (Respicio & Co.)
3. Civil Liability & Administrative Sanctions
| Breach | Immediate consequence |
|---|---|
| Late or non-remittance | 2 % interest / penalty per month until fully paid, over and above the principal contribution. |
| Misreporting or under-declaration of wages | Assessment of the correct contributions plus 2 % penalty and possible fraud charges. |
| Continuing delinquency | SSS may issue a Warrant of Distraint, Levy & Garnishment (WDLG) on bank accounts and property, or sue civilly for recovery. (Respicio & Co., Philippine Information Agency) |
Condonation / restructuring. From time to time the SSS offers amnesty (e.g., Pandemic Relief & Restructuring Program 2 – PRRP 2 in 2021-2022) that waives the 2 % penalty upon full payment or approved instalment. (Social Security System)
4. Criminal Offences & Penalties (Sec. 28, R.A. 11199)
| Act | Fine | Imprisonment |
|---|---|---|
| Failure or refusal to register employees, deduct, or remit contributions | ₱ 5 000 – ₱ 20 000 | 6 years & 1 day – 12 years (per count) |
| Misappropriation of already-withheld contributions or loan amortisations | Prosecution for Estafa (Art. 315, RPC) on top of SSS penalties | |
| Violations committed by a corporation, partnership, or association | Managing head, directors or partners are personally liable. (Respicio & Co.) |
Prescription. Criminal actions punishable by ≥ 6 years imprisonment must be filed within 12 years from commission or discovery; civil suits to collect contributions prescribe in 20 years. (Jur.ph)
5. Jurisprudence Highlights
| Case | Doctrine |
|---|---|
| Benedicto v. Abad Santos (G.R. 74689, 21 Mar 1990) | The 20-year period in Sec. 22 applies to civil collection; criminal prosecution follows the shorter periods under Act No. 3326. (Jur.ph) |
| Navarra v. People (G.R. 224943, 2016) | Conviction of corporate officer for wilful non-remittance affirmed; good-faith defence rejected. (LawPhil) |
| Kua v. People (G.R. 191237, 2013) | Corporate officers who controlled payroll are solidarily liable even if they later leave the company. (E-Library) |
6. Enforcement in Practice
- R.A.C.E. Campaign. SSS inspection teams routinely serve violation notices and now file cases en masse; in May 2024 four employers were charged for ₱ 15 million in delinquencies, with 655 more in the pipeline. (Philippine Information Agency)
- Coordination with DOLE & NLRC. Parallel money claims may be filed at the NLRC; labour arbiters often order employers to pay the amount of the missing contributions plus 10 % legal interest and, if in bad faith, moral damages. (RESPICIO & CO.)
7. Remedies Available to Employees
- File a Delinquency Complaint at the nearest SSS branch or via the online “RUN AFTER CONTRIBUTION EVADERS” portal.
- Money Claim before the NLRC or DOLE Regional Arbitration Branch for unpaid contributions treated as wages.
- Benefit Applications—the SSS will still process a benefit claim and afterwards pursue reimbursement from the delinquent employer.
8. Defences & Mitigating Circumstances for Employers
- Proof of timely remittance (bank-validated slips, e-payment confirmations).
- Force majeure or other extraordinary events justifying condonation or restructuring.
- Voluntary disclosure and settlement before the issuance of a statement of account can avert criminal referral. (Respicio & Co.)
9. Compliance Checklist (Best Practice)
| Task | Frequency / Trigger |
|---|---|
| Register new hires | Within 30 days of first actual work |
| Upload Electronic Contribution Collection List (e-CL) | Monthly, on or before assigned due date |
| Pay contributions (10 % + 5 %) | Same deadline as filing |
| Reconcile SSS statements vs. payroll | Quarterly |
| Monitor SSS Circulars & contribution table updates | Ongoing |
| Keep remittance records | Minimum 10 years |
10. Key Take-Aways
- Non-payment is a strict-liability offence: intent is irrelevant for the imposition of the 2 % civil penalty.
- Wilful non-remittance and misappropriation expose owners and officers to imprisonment of up to 12 years, estafa, and personal liability.
- The SSS actively enforces through audits, RACE operations, and court actions; prescription is long (civil, 20 years) or generous to the State (criminal, 12 years).
- Periodic condonation programs provide limited windows to wipe out penalties.
- Diligent record-keeping, e-payments, and prompt registration are the surest safeguards.
This article is for informational purposes only and is not legal advice. Consult the full text of R.A. 11199, its IRR, and competent counsel for case-specific guidance.